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Monetary Policy

Cyprus surprises with unchanged repo rate

The Central Bank of Cyprus has raised the interest rate on its marginal lending facility and on the overnight deposit facility by 25 basis points. However, the rate on the central bank's main refinancing operations (repo rate) remains unchanged at 4.5%.

ECB lifts rates to 4%

The European Central Bank has raised its key interest rates by 25 basis points to 4%, taking rates in the eurozone to their highest level for six years. This latest increase means that interest rates have doubled in 18 months.

Inflation expectations contained - Turkey's Yilmaz

Speaking at a conference celebrating the 75th anniversary of the Central Bank of the Republic of Turkey, governor Durmus Yilmaz said the central "strong reaction" to financial turmoil in 2006 "have contained inflation expectations" and that these will …

Sweden's Rosenberg on interest rates

External price pressure and expectations of improvements in productivity were the reasons why Irma Rosenberg, a first deputy governor at Sweden's Riksbank, voted for rates to stay on hold at the monetary policy meeting at the start of the month, she said…

Governor's deciding vote sees Czech rates up

The Czech Central Bank raised interest rates by a quarter of a percentage point to 2.75% on 31 May. The central bank's board was split, with three members voting for the hike and three for leaving rates unchanged. It then fell to governor, Zdenik Tma, to…

UK's Blanchflower explains voting behaviour

In a speech on 30 May David Blanchflower, member of the Bank of England's Monetary Policy Committee, said that he voted to raise rates for the first time since joining the MPC in June 2006 because he wanted to indicate to the public the Bank's intention…

Israeli rates cut again

The Bank of Israel has cut interest rates by 25 basis points to 3.5%. The decision, announced on 28 May, comes as inflation remains below the central bank's 1 to 3% inflation target.

Bini Smaghi on "secondary objectives"

In his speech 'With or Without Prejudice to Price Stability? , Lorenzo Bini Smaghi, a member of the Executive Board of the European Central Bank, discusses what the central bank can do to achieve its so-called secondary objectives of monetary policy.

Germany defends ECB focus on money growth

Germany's Bundesbank has come out in stout defence of the European Central Bank, arguing that money supply figures - used by the ECB in making interest rate decisions - are helpful in identifying property market distortions.

Thai CB cuts rates again

In an effort to revitalise the economy, Thailand's central bank has cut interest rates for the fourth time since the start of 2007, reducing the one-day bond repurchase rate from 4% to 3.5%.

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